Stricktly +EV for a Young Investor

[IVPanda]

My question is what do you think of this guy and his strategy?

A young man in California, has $25,000 to invest. He wants to be very aggressive and only cares about making the most +EV choices w/ his investments.

This person plans to have a decent paying job 50-70k/year, and wants to buy a house someday. For now he is single, without too many living expenses and puts whatever money he can into his portfolio.

Normal advice would be to stick his money in a few mutual funds. But because he only cares about being as +EV as possible would a better line be an all single stock portfolio?

Doing this by himself, he plans to use mostly Large cap w/ some Mid-cap stocks. He picks a blend of growth and value companies all in different consumer industries. He uses the Standard & Poor's reports and only purchases companies rated 5 stars.

[hlacheen]

Unless he wants to spend the time to learn and read and research stocks and pick them very selectively, I think index is the most EV.

[IVPanda]

I guess another big question, is what does everyone think of the S&P reports?

I just bought some Intel and Mcdonalds recently, rated well in these reports

[Uglyowl]

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I guess another big question, is what does everyone think of the S&P reports?

I just bought some Intel and Mcdonalds recently, rated well in these reports

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Personally I like the S&P reports, I have got some good recommendations from them. A free source with very good information!

[pig4bill]

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He wants to be very aggressive and only cares about making the most +EV choices w/ his investments.

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This is an oxymoronic statement. There is no EV possible for stock market investments. To be +EV he needs to be in T-bonds or the like, where it's not possible to lose money.

[calmB4storm]

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He wants to be very aggressive and only cares about making the most +EV choices w/ his investments.

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This is an oxymoronic statement. There is no EV possible for stock market investments. To be +EV he needs to be in T-bonds or the like, where it's not possible to lose money.

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This is a moronic statement.

[maxtower]

I'll take a shot at explaining what is going on here:

1. Higher returns are possible by picking a single stock than by buying the index.

2. Buying a single stock picked at random (or picked by someone without skill) is not higher EV than buying the index.

3. Based on the OP, buying an index is the most +EV for you.

[DcifrThs]

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He wants to be very aggressive and only cares about making the most +EV choices w/ his investments.

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This is an oxymoronic statement. There is no EV possible for stock market investments. To be +EV he needs to be in T-bonds or the like, where it's not possible to lose money.

[/ QUOTE ]

do you mean there is no EV in active management for an individual like the op?

can you clarify what you mean here?

thanks,
Barron

[PRE]

Please don't listen to the posters in this thread who are telling you index funds are always better than actively managed funds, because there couldn't be anything further from the truth. Take some time to research funds out their with great track records, relatively low costs, and have a min. fee that meets your requirements.

[DcifrThs]

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Please don't listen to the posters in this thread who are telling you index funds are always better than actively managed funds, because there couldn't be anything further from the truth. Take some time to research funds out their with great track records, relatively low costs, and have a min. fee that meets your requirements.

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index funds in conjunction with a well constructed portfolio has always done better and will in all likelihood will always do better than actively managed funds.

Barron